RBI Submitted A List Of High Profile Fraud Cases To PMO: Raghuram Rajan

A list of high profile cases related to banking frauds was sent to the Prime Minister’s Office (PMO) for a coordinated action, said former RBI Governor Raghuram Rajan in a note to Parliamentary panel. In the note to Chairman of Estimates Committee Murli Manohar Joshi, Rajan said that the size of frauds in the public sector banking system has been increasing, though still small relative to the overall volume of NPAs.

“The RBI set up a fraud monitoring cell when I was Governor to coordinate the early reporting of fraud cases to the investigative agencies. I also sent a list of high profile cases to the PMO urging that we coordinate action to bring at least one or two to book. I am not aware of progress on this front. This is a matter that should be addressed with urgency,” he said.

Rajan, who was RBI governor for three years till September 2016, is currently teaching at the Chicago Booth School of Business. Noting that system has been singularly ineffective in bringing even a single high profile fraudster to book, he said, frauds are different from normal non-performing assets (NPAs).